Earnings Management and Financial Performance of Listed Industrial Goods Companies in Nigeria

This study examined the effect of earnings management on the financial performance of listed industrial goods companies in Nigeria using Return on Assets (ROA). The study employed an ex post facto research design because of the availability of published data. The population of the study comprised all the 13 listed industrial goods companies as contained on the Nigerian Exchange Group Website and Factbook 2022 for period of the study (2011 to 2021); while census sampling technique was employed to select 11 listed industrial goods companies in Nigeria. Data were analysed using descriptive statistics and inferential statistics of panel regression method. The results revealed that accrued earnings management had a positive and significant effect on profitability The study concluded that earnings management serves as a determinant factor of financial performance of industrial good companies in Nigeria. The study recommended that firms should reassessing their governance structures and practices to prioritize ethical standards. This will help ensure that any earnings management practices are balanced and transparent, maintaining the trust of investors and the integrity of financial reporting.

Earnings Management, Financial Performance, Accrued Earnings Management, Return On Assets

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